Credo Technology Group (NASDAQ:CRDO) Stock Price Down 4% – Should You Sell?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares dropped 4% during trading on Wednesday . The stock traded as low as $217.42 and last traded at $226.74. 5,556,739 shares traded hands during mid-day trading, a decline of 28% from the average session volume of 7,762,367 shares. The stock had previously closed at $236.18.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on CRDO. Jefferies Financial Group boosted their price target on Credo Technology Group from $225.00 to $270.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. Evercore started coverage on Credo Technology Group in a report on Monday, June 22nd. They set an “outperform” rating and a $325.00 price target on the stock. Susquehanna lifted their price objective on shares of Credo Technology Group from $200.00 to $235.00 and gave the company a “positive” rating in a research note on Tuesday, June 2nd. Needham & Company LLC upped their price objective on shares of Credo Technology Group from $220.00 to $275.00 and gave the stock a “buy” rating in a report on Monday, June 1st. Finally, Weiss Ratings raised shares of Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, May 26th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $263.11.

Credo Technology Group Stock Performance

The stock has a market capitalization of $42.28 billion, a P/E ratio of 91.43, a price-to-earnings-growth ratio of 1.08 and a beta of 3.20. The business has a 50 day simple moving average of $230.86 and a 200-day simple moving average of $165.90.

Credo Technology Group (NASDAQ:CRDO) last posted its quarterly earnings data on Monday, June 1st. The company reported $1.16 EPS for the quarter, topping analysts’ consensus estimates of $1.02 by $0.14. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The company had revenue of $437.00 million for the quarter, compared to the consensus estimate of $431.80 million. During the same quarter in the previous year, the business earned $0.20 EPS. The company’s quarterly revenue was up 157.0% compared to the same quarter last year. Equities research analysts forecast that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current fiscal year.

Insider Buying and Selling

In other Credo Technology Group news, CEO William Joseph Brennan sold 54,984 shares of the company’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $218.57, for a total value of $12,017,852.88. Following the completion of the sale, the chief executive officer directly owned 367,327 shares of the company’s stock, valued at approximately $80,286,662.39. This represents a 13.02% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Chi Fung Cheng sold 27,500 shares of the firm’s stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $270.94, for a total transaction of $7,450,850.00. Following the transaction, the chief technology officer owned 5,937,370 shares of the company’s stock, valued at approximately $1,608,671,027.80. This trade represents a 0.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 357,162 shares of company stock valued at $80,401,646 over the last three months. Company insiders own 11.84% of the company’s stock.

Hedge Funds Weigh In On Credo Technology Group

Several hedge funds have recently made changes to their positions in CRDO. Mirae Asset Global Investments Co. Ltd. raised its holdings in shares of Credo Technology Group by 9.4% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 271,067 shares of the company’s stock worth $39,004,000 after acquiring an additional 23,332 shares in the last quarter. M&T Bank Corp grew its stake in Credo Technology Group by 428.8% in the fourth quarter. M&T Bank Corp now owns 13,427 shares of the company’s stock valued at $1,932,000 after purchasing an additional 10,888 shares in the last quarter. FengHe Fund Management Pte. Ltd. increased its position in Credo Technology Group by 5.7% in the 4th quarter. FengHe Fund Management Pte. Ltd. now owns 162,269 shares of the company’s stock worth $23,349,000 after purchasing an additional 8,769 shares during the last quarter. Second Line Capital LLC acquired a new position in Credo Technology Group in the 3rd quarter worth about $4,283,000. Finally, Nordea Investment Management AB purchased a new stake in shares of Credo Technology Group during the 4th quarter worth about $2,084,000. Institutional investors and hedge funds own 80.46% of the company’s stock.

Credo Technology Group Company Profile

Credo Technology Group, Inc (NASDAQ: CRDO) is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo’s product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.